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I was very surprised about some actual debate on this recently, at our state level. In Illinois, our Governor proposed increasing corporate taxes. You know, make 'them' pay their 'fair share'.
The surprise to me was - almost everyone saw through this. He got attacked on all sides, with comments that the corporations will just pass the tax on to the citizens, business will flee the state, we will lose jobs, etc, etc, etc. Man, he was hot on this plan for a while, but dropped it like a rock after a month of backlash.
So, why not drop federal corporate taxes also? I think a NST ('fairtax') is very unlikely to get enough support, but dropping corp tax seems like a great first step at simplifying the tax code. Why not just do it?
When I've mentioned this before, some people claim that the businesses will not pass the savings on to the customer. I'm sorry, but markets just don't work that way. And if there are some non-free markets, well we are getting screwed anyway, I don't think this will make matters worse.
-ERD50
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